Author: Jonathan Miller

The Appraisal Foundation Is About To Get PAVEd 13

TAF Is About To Get PAVEd

The current administration is addressing the lack of diversity in housing valuation head-on with the formation of an interagency task force on Property Appraisal and Valuation Equity (PAVE). Here are the details of the PAVE Task Force. They just had their first meeting and this is a serious effort unlike the silliness of TAF’s bureaucratic actions of the past year that were nothing more than window dressing to the lack of diversity problem within the appraisal industry. Incidentally, The Appraisal Foundation is not part of PAVE Task Force. Keep that in mind when you read their bat-shit crazy letter again and think about the fact that...

Recent Policy Changes Make Room for Bifurcated Appraisals 12

Paving the Way for Hybrids

…since we know retail mortgage lenders, they will demand appraisers take their own photos but accept MLS or no photos in bifurcated “appraisals.” An appraiser shared these modifications with me: Exterior photographs Clear, descriptive photographs showing the front, back, and a street scene of the subject property and the front of each comparable. The subject and all comparables must be appropriately identified. Acceptable photographs include original images from photographs or electronic images, copies of photographs from a multiple listing service, or copies from the appraiser’s files. Photographs of comparable rentals utilized in the Small Income Residential Appraisal Report (Form 1025) are not...

Appraising Madoff... Thankfully No Tears Are Shed For Him 5

Appraising Madoff

It was a bit surprising how little attention was paid to the announcement of Madoff’s death in prison. Good. His returns were amazingly linear and there were a number of people that kept calling out the ponzi but he was close with regulators. Because my firm is located in NYC, we’ve ended up doing appraisals in matters related to the post-Madoff tragedy/cleanup. All those people who trusted in him that had their finances destroyed – still hard to process. In the aftermath, we appraised the properties of his wife, brother, both of his sons (the apartment where one sons committed...

Appraisal Waivers Explosion 10

Appraisal Waivers Explosion

For all the talk about how important appraisers are to risk management by the GSEs, we really aren’t. There is a compelling blog post using AEI data by Ryan Lundquist over at Sacramento Appraiser Blog. Appraisal waivers have really exploded in recent years – especially during the pandemic. But how many are there exactly? Let’s look at actual numbers to walk away with some perspective. These stats are from January 2021 from AEI. QUICK SUMMARY: 47.4% of all Freddie Mac loans had a waiver 44.5% of all Fannie Mae loans had a waiver Waivers are far more common during refinances...

USPAP one year extension 1

Reason Why USPAP Was Extended

What is the actual reason USPAP was extended without warning for an additional year? Don’t get me wrong. I am all for longer USPAP cycles or doing updates on an as-needed basis in an industry that changes very little. As I’ve mentioned before, Dave Bunton of TAF said during the ASB public call on February 19th that USPAP was extended another year because of COVID – yet that makes no sense. Zoom calls are ubiquitous these days, so COVID is not a legitimate reason – we can argue that TAF is MORE efficient with Zoom. I bring this up specifically...

Appraisers Are Sitting Ducks to Random Legislation 12

Appraisers Are Sitting Ducks to Random Legislation

Bill A5185 and AMC Bill A5146 introduced to the state legislature in New Jersey show just how much state legislators don’t understand the appraisal profession. Valuation Legal warned us about this back in December: Appraiser and AMC Laws to Include Prohibitions Against Discrimination. From Bill A5185: 2. a. Prior to the initiation of a residential property appraisal, a holder of a license or certification under P.L.1991, c.68 (C.45:14F-1 et seq.) or registration under P.L.2017, c.72 (C.45:14F-27 et al.) shall provide a property seller with a document, in a form and manner prescribed by the board, informing the property seller of...

Epic Fail - AI Needs a Complete Makeover 6

Epic Fail – AI Needs a Complete Makeover

As I’ve chronicled in the Appraiserville section of my Housing Notes newsletter since 2016, the scale of Appraisal Institute bureaucratic self-dealing of the executive committee and some members of the AI Board of Directors is breathtaking. Over the past decade or more, AI National has been able to keep a lid on the membership backlash by threatening to remove a member’s credentials for speaking out. Membership has been reluctant to risk losing something they worked hard for in both time and money that they have remained quiet – until the past few years. With the significant devaluation of the SRA...

USPAP Trying To Determine What An Inspection Is 30 Years Later? 4

What’s an Inspection, 30 Years Later?

USPAP Doesn’t Require An Inspection So Why Is It Trying To Determine What An Inspection Is 30 Years Later? The ASB is struggling with the 4th Exposure Draft and issues of clarifying significant professional assistance and what an inspection means? Why? USPAP doesn’t require an inspection – never has. And good grief… a FOURTH exposure draft in an already over-analyzed two-year USPAP cycle? The reason why Dave Bunton & Co. (TAF) has been emphasizing the Supervisor position is they are trying to retrofit USPAP back into the position. This is the same institution that felt it was appropriate to send...

There is Real Corruption in National Leadership 10

Real Corruption in AI National Leadership

Here’s a reminder to all members of the Appraisal Institute that there is real corruption in national leadership: The proposed changes to the AI Bylaws will not allow people nominated to executive positions to provide any outside recommendations for the second vice president position. If they are submitted, they will be discarded. Why? It’s absurd and can only be explained by the stranglehold Jim Amorin and his posse have on AI executive leadership. This was clearly done to keep honest appraisers like Craig Steinley from doing what he did and submit an overwhelming number of letters of recommendations from leaders...

TAF Turns Down Free Grant Money, Counts on Appraisers to Foot the Bill 4

TAF Counting on Appraisers to Foot the Bill

From October 30, 2020 TAFAC meeting, TAF president Dave Bunton said: “Earlier this week the Foundation notified the ASC that it would not be seeking any grant funds for 2021” Turning down “free” grant money means that TAF is counting heavily on appraisers to foot the bill when ethically, TAF should be making USPAP free. They are not taking the money because they are trying to avoid the “strings attached” from ASC (translation: avoiding oversight from ASC). The Cosmic Cobra Guy Jeremy Bagott Asks Us To See TAF As A Disney-like Rights Management Operation From Buzzcast: Junkets, Petitions, and the...

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